Balance Sheet: Shows assets and liabilities and ownership equity on a specific date. Income Statement: Shows revenues and expenses, gains and losses, during a period of timeStatement of O.E. Shows the activity of owners - receipt of funds and dividends paid.
Shows the earnings of the business that go to the shareholdersC F Statement: Shows the source of cash and what the cash was used for this period

What does each financial statement really tell you about the business?Balance Sheet: What the company has and what they owe on this dateIncome Statement: How much the company earned during this period of timeOwner’s Equity: What occurred that impacted the owners of the company Cash Flows: Cash generated from day to day operations, use for, additional cash from?

“Retained Earnings” is the amount of cumulative profits and losses kept in the company
Beginning R.E. + Net Income – Dividends Paid = Ending R. E. put on the balance sheet

The cash flow statement has 3 separate sections:
Operating Activities: directly related to earning income, changes in current assets and current
liabilities
Investing Activities: cash flows related to buying and selling long term assets
Financing Activites: cash flows related to borrowing and repaying L/T debt, to / from owners

“Elements” that are reported on the financial statementsAsset: The company’s economic resource used to operate the business - company OWNS
1) Probable future economic benefit 2) Owned or controlled by the business
3) Resulting from a past transaction, something that has already occurred

Liability: The company’s debts and obligations What the company OWES
1) Probable use of a future economic benefit (an asset)
2) Owed 3) Resulting from a past transaction Give up an asset to pay what is owed